Stock Story -
Arcade company Dave & Buster’s (NASDAQ:PLAY) will be reporting results tomorrow after market hours. Here’s what investors should know.
Dave & Buster's missed analysts’ revenue expectations by 4.5% last quarter, reporting revenues of $588.1 million, down 1.5% year on year. It was a weak quarter for the company, with a miss of analysts’ earnings estimates.
Is Dave & Buster's a buy or sell going into earnings? Find out by reading the original article on StockStory, it’s free.
This quarter, analysts are expecting Dave & Buster’s revenue to grow 3.4% year on year to $560.6 million, slowing from the 15.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.86 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dave & Buster's has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Dave & Buster’s peers in the leisure facilities segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Life Time delivered year-on-year revenue growth of 18.9%, beating analysts’ expectations by 5.2%, and Sphere Entertainment reported revenues up 112%, in line with consensus estimates. Life Time traded up 7.5% following the results while Sphere Entertainment was also up 13.5%.
Read the full analysis of Life Time’s and Sphere Entertainment’s results on StockStory.
There has been positive sentiment among investors in the leisure facilities segment, with share prices up 4.1% on average over the last month. Dave & Buster’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $56.6 (compared to the current share price of $30.76).
